Plaintiffs filed a class action lawsuit against the defendant after the subscription-based wireless communication system in their vehicle that was manufactured by the defendant became obsolete and defendant refused to replace the system at no cost to the plaintiffs. Plaintiffs alleged breach of warranty under federal and state law. The district court granted the defendant’s motion to compel arbitration based on the product’s terms of service and plaintiffs appealed, arguing that they did not agree to arbitrate their claims. The Seventh Circuit affirmed, finding that defendant presented unrebutted evidence that subscribers received notice of the arbitration provision in the agreement prior to initiating their subscriptions. (ROVNER and SCUDDER, concurring)
Federal 7th Circuit Court
Civil Court
Arbitration Agreement